Rising investments for infrastructure development in developed and developing regions and along with the growing usage of HDPE Pipes in Oil & Gas Industry is expected to drive the market growth during the forecast period. High density polyethylene pipes market size is forecast to reach $ 20,460.4 million by 2025, after growing at a CAGR of 4.5% during 2020-2025.
High Density Poly Ethylene (HDPE) pipes are mainly used in the oil and gas industries due to its ability to withstand demanding service conditions such as high corrosion resistivity and zero reactive properties, and long service periods. So, with the increasing crude oil production enhances the demand for HDPE pipes is also expected to increase. HDPE pipe can meet and withstand many challenges and has several proven advantages for mining and industrial applications, the pipe provides abrasion resistance, chemical resistance, surge resistance, lower cost, and so on. The ongoing plan for the execution of 5G network will the high higher opportunity for the growth of HDPE conduit. Currently, APAC countries are highly contributing to start 5G project as soon as possible, which tends to increase the demand of HDPE conduit in the rapid pace.
The production and demand in top countries for high density polyethylene pipes is expected to boom over the next five years. In terms of revenue small diameter pipes (up to 15 Inches) is the dominant diameter, accounting for the largest share with 64.1% in the high density polyethylene pipes market in 2019. Small diameter pipes include HDPE pipes up to 15 inches. Small diameter HDPE pipes can provide lower cost and alleviate problems with today’s older and failing pipeline infrastructure. As it is an excellent choice for replacing the oversized pipe with a smaller diameter which can greatly improve carrying capacity. Waster distribution systems consist of either force mains or gravity sewers. The first relies on applied pressure heads induced by water pumps to generate flow in the pipes. The second relies on gravity to allow for water flows. In smaller diameter pipes force mains tend to be smaller since the applied pressure can cause high-flow velocities even in less pressure in small diameter pipes. Small diameter pipes make it possible to perform extensive municipal water, sewer, and industrial pipe repairs rapidly while causing minimal disturbances. Small diameter pipes are widely used in housing units and irrigation.
Growing usage of HDPE Pipes in the oil & gas industry, in which companies are trying to adopt high-density polyethylene (HDPE) pipes as an alternative of steel pipes due to the cost-effectiveness of the HDPE pipes. Also, the HDPE pipes offer advantages such as chemical and corrosion resistance, lightweight and these pipes also can be used in moderate temperatures. Apart from this, in the oil & gas industry, the high-density polyethylene (HDPE) pipes are also used in the fracking (a process of injecting liquid at high pressure) for the collection and transportation of hydrocarbons, as well as the transportation and collection of water which is used in this process. The major reason behind using the HDPE pipes in this process is its excellent impact resistance, high tensile strength, low moisture absorption, and ease-of-handling. Further, these advantages are increasing the use of HDPE pipes in the oil & gas industry which is expected to drive the growth of the HDPE pipes market over the forecast period.
APAC dominated the high density polyethylene pipes market with a share of 45.7% in 2019 and is projected to dominate the market during the forecast period (2020-2025). China is one of the attractive and fastest growing among the emerging markets with the investments on various industrial and heath care projects. China’s healthcare sector continuous to develop at a very high growth rate. Agriculture is another major industry in China’s economy with the country being both the largest consumer and producer of agricultural products in the world. And with the growing agriculture sector in this country the HDPE pipes demand will also increase in this region. Agriculture in Japan plays a significant role and contributes approximately 1.4% of the national GDP and about 12% of the land in the country is appropriate for farming. HDPE is resistant to environmental temperature changes, load tolerances, and expanding and contracting soils. Most importantly, HDPE Pipe will not break even when water in the lines freeze. These features and more make HDPE a superior choice over steel or ductile iron pipe for irrigation projects. In November 2019, Major works to expand and modernize Nyakomba Irrigation Scheme in Nyanga, in which US$18 million was injected by Japan. These investments will further increase the demand for HDPE pipes in japan.
Talk to one of our sales representative about the full report by providing your details in the link below:
High Density Polyethylene Pipes Market Growth Driver
Aging water infrastructure and flourishing irrigation sector
The HDPE (High-Density Polyethylene) pipes are used as a medium for supplying drinking water. Various countries in America are facing the problem with the water which is affecting the individual household and communities. According to U.S EPA, due to leaks and breaks, U.S. water utilities, in aggregate, lose more than a quarter of processed water between treatment plants and the tap every day. Potable water pipe renewal costs may reach more than $1 trillion in the coming decade. Thus, there is a need for a reliable and durable pipe material. High Density Polyethylene (HDPE) pipe is one such material to consider. In 2019, the United States Environmental Protection Agency (EPA) announced the availability of more than USD 95 Million in new funds to help the State of Michigan, such government initiatives to improve the drinking water and wastewater infrastructure is expected to drive the growth of HDPE pipes market in the North America region.
The United States totally depends upon the underground pipes for their water supply, but the network of these underground pipes has reached the end of their useful life, which is resulting in various health problems. Further, increasing spending on the water infrastructure and wastewater treatment is believed to impetus the growth of the HDPE pipes market over the upcoming years. According to the Pengurusan Aset Air Berhad (PAAB), Johor (Malaysia) has added an additional 224.6 MLD of treated water capacity or 25% or more compared to the treated water capacity present in 2012. With an additional 61.8MLD being constructed, and 340 MLD to be constructed, Johor will see a total increase in treated water capacity of 626.4 MLD or 35% by 2022, in order to meet the increased demand from the growing population and state economy. In December 2019, the Asian Development Bank (ADB) has approved a $119.16 million financing package to help modernize and improve the climate and disaster resilience of irrigation systems in four provinces in Cambodia, which will help supply water to 43,500 hectares (ha) of farm land benefiting 290,000 people. Thus, aging water infrastructure and flourishing irrigation sector is driving the HDPE pipes market growth.
Rising investments for infrastructure development
The HDPE pipes offer various functional advantages such as sustainability, durability, and flexibility along with superior resistance to corrosion and abrasion. Apart from this, the HDPE piping systems also provide long service life, excellent joint performance, and offer leak-free protection. Due to the continuous infrastructure development in the developing countries, the demand for plastic pipes has increased exponentially, and the demand for high-density polyethylene (HDPE) pipes is also increasing. In 2019, China government invested 1.9 billion on 13 public housing projects and approved to invest $142 billion in 26 infrastructure projects. In addition, according to India Brand Equity Foundation (IBEF), India plans to spend US$ 1.4 trillion on infrastructure in the next five years. Furthermore, construction projects such as ‘100 smart cities’ and ‘Housing for All by 2022’ in India are influencing High Density Polyethylene Pipes demand.
In addition, the United States is witnessing noticeable investment for residential construction, and the trend is expected to remain the same in the near future. For instance, according to U.S Census bureau, in January 2020 value of construction put in place in residential and nonresidential construction increased to $567,555 million and $470,986 million from $546,532 million and $466,436 million in December 2019. Mexico is also witnessing high housing demand, therefore attracting noticeable investment into construction. For instance, In January 2019, Inter-American Development Bank (IDB) granted local currency financing program to the Mexican company Procsa up to 150 million Mexican pesos ($7.8 million), in order to finance for land acquisition, development and commercialization of housing for low- and middle-income families in the country. Therefore, the growth in construction projects and investments, is driving High Density Polyethylene Pipes market growth.
The Major Players in this Market Include
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the high density polyethylene pipes market. In 2019, the market of high density polyethylene pipes has been consolidated by the top five players accounting for 25% of the share. Major players in the high density polyethylene pipes market are Advanced Drainage Systems, Inc., JM Eagle Inc., WL Plastics, Chevron Phillips Chemical Company, China Lesso Group Holdings Limited, Georg Fischer Central Plastics LLC, Blue Diamond Industries LLC, United Poly Systems, LLC, Infra Pipe Solutions Ltd., Charter Plastics, Inc., among others.
In March 2020, GF Piping Systems, a division of GF, has signed a partnership agreement with Oxford Flow Limited., based in Oxford (UK). Its innovative pressure-regulating valve allows utility companies to reduce water loss, a major problem around the globe. As part of the agreement, GF will acquire in two steps a 23% minority stake in the company.
In November 2020, GF Piping Systems, a division of GF, has signed a joint venture with Corys Investments LLC, located in Dubai (United Arab Emirates), and Egypt Gas, Cairo (Egypt). The joint venture, in which GF will take the industrial lead, will invest in a new production site for plastic pipes to participate in the soaring Egyptian gas and water distribution market.
In August 2019, Chevron Phillips Chemical Company has invested more than $30 million in major capital improvements across its nine U.S. facilities in order to continue to provide quality products to the gas distribution, industrial, water and energy markets. Increasingly challenging applications have required the durability provided by high-density polyethylene (HDPE) pipe, which has led the company to enhance its capabilities across the country.
Furthermore, The COVID-19 pandemic has negatively impacted the global economy and lowered equity valuations, in addition to disrupting global supply chains and workforce participation. Quarantines and "stay in place" orders, the timing and length of containment and eradication solutions, travel restrictions, absenteeism by infected workers, labor shortages, or other disruptions to supply chain or customers have adversely impacted the sales and operating results and has resulted in some project delays in HDPE pipe market. In addition, the pandemic has resulted in an economic downturn that could affect the ability of customers to obtain financing for projects and therefore impact demand for products and services. In addition, order lead times could be extended or delayed and pricing or pricing of suppliers for needed materials could increase. To date, various countries have experienced some delays in state and municipal construction projects due to COVID-19. Site closures or project delays have occurred and increased social distancing and health-related precautions are required on many work sites, which may cause additional project delays and additional costs to be incurred. In addition, globally, various companies have experienced the temporary closure of many of the customer's retail locations and temporarily shut down factories to comply with the government "stay in place" orders. It is expected that this global pandemic will have a major impact on the HDPE pipe market. And it is expected that the outbreak of COVID-19 will be seen in the whole year of 2020, and a few months in 2021.
To request for a quote, provide your details in the below link:
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1-970-236-3677
About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.